| Thinking about changing payroll services? Smaller | | | | or not: |
| payroll companies often charge substantially less than | | | | - Complete name |
| their larger, nationally recognized counterparts. The | | | | - Last known mailing address |
| main reason for this discrepency is that the smaller | | | | - Social Security number |
| companies do not have the overhead of the larger | | | | - W-4 (for filing status) |
| companies, so they can pass the savings along to | | | | - Hire date |
| clients. | | | | - Quarter-to-date earnings and withholdings |
| If decide you want to change from a big-name | | | | - Year-to-date earnings and withholdings |
| provider to a smaller payroll firm, or if you are starting | | | | 3. Information about your company: |
| a business and need payroll services, remember that | | | | - Company type (sole-proprietor, s-corporation, etc.) |
| smaller payroll providers often offer the same services | | | | - Company address |
| as the larger companies: | | | | - Date you plan to run the first payroll with the new |
| - One time set-up fee, payroll service handles set-up | | | | service |
| - Payroll customer or payroll service enters hours | | | | - Federal employer ID number and state employer ID |
| worked and prints paystubs each pay period | | | | number |
| - Payroll service handles all tax payments and tax | | | | - Federal filing requirement |
| returns | | | | - Tax payment schedule for both Federal and state |
| - Payroll service offers electronic services for all | | | | - State tax rates, if applicable |
| transactions--direct deposit, tax forms, tax payments, | | | | - Pay schedules (when/how often employees get |
| W-2s | | | | paid) |
| - Payroll service offers ability to pay sub-contractors | | | | - Vacation and/or sick leave policies |
| with direct deposit, then issue and electronically file | | | | - Deduction information on any retirement plans and |
| 1099s at year-end | | | | insurance premiums |
| - 3-4 week lead time before processing first payroll | | | | - Garnishment information |
| with new payroll service | | | | Enroll in all electronic payroll services the new |
| - Lower monthly rates than the big name payroll | | | | company offers. Not only do these ensure accurate |
| services | | | | and timely tax filings and payments, there are usually |
| Note that some smaller payroll services have the | | | | no additional fees for them, and they are much easier |
| capacity to pay 1099 contractors with direct deposit, a | | | | than the old system of paper checks, paper coupons, |
| service not offered by nationally recognized payroll | | | | trips to the bank, and trips to the post office. |
| firms. | | | | The power of the Internet means you don’t |
| If you determine that the smaller payroll service will | | | | need to pick a payroll service in your local area. Both |
| meet your needs, be sure to have the following | | | | the you and the new service can access payroll data |
| information available as soon as possible: | | | | from the convenience of your Internet browsers. |
| 1. All previous payroll tax returns for the current year. | | | | If you are looking to increase your bottom line, a |
| 2. For each and every employee that has worked for | | | | smaller payroll service may be able to help. Shop |
| your firm during the payroll year, whether still employed | | | | around and compare. |